May 2, 2017
CenturyLink today announced it has completed the previously announced sale of its data centres and colocation business to funds advised by BC Partners, in a consortium including Medina Capital Advisors and Longview Asset Management.
CenturyLink has received approximately US$1.86 billion of pre-tax net cash proceeds, subject to certain post-closing adjustments, and an approximately 10% equity stake in the consortium’s newly formed global secure infrastructure company, Cyxtera Technologies. CenturyLink said it plans to use the net after-tax proceeds from this sale to partly fund its acquisition of Level 3 Communications announced on Oct. 31, 2016.
“This sale allows CenturyLink to drive greater focus on our network infrastructure while still having the ability to sell colocation services in these data centres,” said Glen F. Post III, chief executive officer and president of CenturyLink.
Under terms of the agreement, Cyxtera assumes ownership of CenturyLink’s portfolio of 57 data centres, which includes approximately 195 megawatts of power across 2.6 million square feet of raised floor capacity. Approximately 700 CenturyLink employees will transition to Cyxtera.
CenturyLink said it intends to continue to offer colocation services as part of its hybrid IT offerings through its commercial relationships with Cyxtera.